Hyundai Motor India is reportedly exploring a third manufacturing plant in Chhatrapati Sambhaji Nagar in Maharashtra or Sanand in Gujarat, with potential capacity of about 500,000 units a year, according to an exclusive report by Autocar Professional published on 29 September 2026. Hyundai has not confirmed the plan and told the publication it does not comment on market speculation.
The reported plant would be built in phases over five to seven years and become relevant around 2030. The report puts potential investment at more than $2 billion, on top of Hyundai’s existing commitment of ₹45,000 crore through FY2030. This article is based on a report dated 29 September 2026 and does not reflect any later company disclosure.
Why Would Hyundai Need a Third Plant in India?
Hyundai’s two existing bases, Sriperumbudur in Tamil Nadu and Talegaon in Maharashtra, have a combined capacity of about 9.94 lakh units a year, according to a report by AutoPunditz. That is expected to rise to 10.74 lakh units by 2028 as Talegaon expands in phases. The company plans 26 model launches through FY2030 and expects both plants to reach full utilisation by 2030, so extra capacity would be needed for further growth.
How Important Are SUVs and Exports to the Plan?
SUVs already contribute close to 70% of Hyundai’s domestic sales, according to the AutoPunditz report. Autocar Professional reports that about 30% of India production could eventually be exported. The new plant is expected to build mid-size SUVs, MPVs and electric vehicles for domestic and overseas markets. That would make India a larger part of Hyundai’s global production network.
What Does This Mean for the Indian Auto Industry?
A new plant of this scale would draw component suppliers, logistics firms and state governments into competition for the investment. Both Gujarat and Maharashtra are established auto manufacturing states. A phased build-out over five to seven years would give suppliers time to plan capacity, but nothing is final until Hyundai announces a site.
Market Reaction and Industry Response
Industrial Front found no stock-market reaction or comment from state governments or trade bodies in the sources reviewed. Hyundai’s only statement was that it does not comment on market speculation or industry rumours and that it will communicate material developments through appropriate official and regulatory channels.
What Happens Next?
The next signal would be a formal disclosure from Hyundai Motor India, which as a listed company would announce any material decision through regulatory channels. Readers should watch for a site selection, a board approval and any state government incentive announcement. Until then, the plan remains unconfirmed.
Frequently Asked Questions
Where could Hyundai build its third plant in India?
Reports name Chhatrapati Sambhaji Nagar in Maharashtra and Sanand in Gujarat as the locations under consideration. Hyundai has not confirmed either site.
How much capacity could the third plant add?
The reported plan is for about 500,000 units a year at full scale, added in phases over five to seven years. The investment is reported at more than $2 billion.
Has Hyundai confirmed the third plant?
No. Hyundai Motor India said it does not comment on market speculation or industry rumours and will disclose any material developments through official channels.
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